CIMG Inc., a retail miscellaneous company with a market capitalization of $6.79 million, has been notified by The Nasdaq Stock Market LLC of non-compliance with its minimum bid price requirement, as well as a separate issue regarding a delayed annual report filing.
On Monday, January 14, 2025, Nasdaq informed CIMG that its stock did not meet the minimum bid price of $1.00 per share over a 30-day period, a key condition for continued listing on the exchange. Currently trading at $0.73, the stock has experienced significant volatility, having declined over 63% in the past year according to InvestingPro data.
The company, listed under the ticker symbol IMG, has been given 180 days, until July 14, 2025, to rectify the bid price deficiency. If CIMG's common stock reaches or exceeds $1.00 per share for at least 10 consecutive business days before the deadline, Nasdaq will confirm that compliance has been regained.
However, if CIMG fails to meet the requirement within the initial 180-day period, it may be granted an additional 180 days to achieve compliance, subject to certain conditions. InvestingPro analysis indicates the company faces significant challenges, with a weak overall Financial Health score and rapidly depleting cash reserves. Subscribers can access 15 additional ProTips and comprehensive financial metrics for deeper insights.
In a separate development, on Thursday, January 17, 2025, CIMG received notification from Nasdaq for not filing its Annual Report on Form 10-K for the fiscal year ending September 30, 2024, on time. The company is required to submit a plan to regain compliance within 60 days of the notice. If Nasdaq accepts the plan, CIMG could be granted up to 180 days from the Form 10-K's original due date to file the report.
CIMG attributes the delay in filing the Form 10-K to business and management restructuring, which has necessitated more time to complete financial statements and undergo reviews by accountants and attorneys. The company is working to file the Form 10-K as soon as practicable.
The recent notices have no immediate impact on the trading of CIMG's common stock, which continues to be listed on The Nasdaq Capital Market. There is no assurance that CIMG will regain compliance with the minimum bid price requirement or successfully submit its annual report within the granted extension periods.
With a concerning current ratio of 0.71 and negative gross profit margins, InvestingPro's Fair Value analysis suggests the stock is currently undervalued, though investors should note the significant risks indicated by the company's negative EBITDA of -$7.99 million. Failure to meet Nasdaq's requirements could lead to delisting, but the company would have the right to appeal such a decision before a Nasdaq hearings panel.
In other recent news, CIMG Inc. has experienced significant developments. The company recently announced the immediate resignation of Jian Liu from its Board of Directors, leaving a vacancy that has yet to be filled. Additionally, CIMG Inc. secured $10 million through a private placement of convertible promissory notes and warrants with non-U.S. investors, a move that could support the company's expansion plans amidst analysts' projections of 97% revenue growth for the current fiscal year.
CIMG Inc. also resolved a legal dispute with a former employee without admitting wrongdoing, and raised $2 million through an equity sale to non-U.S. investors. Moreover, the company entered a one-year endorsement agreement with five renowned sports figures to promote its Macanuoli beverage.
The company, formerly known as NuZee Inc., recently underwent a corporate identity change, now operating under the name CIMG Inc. Changes in the executive ranks have also occurred, with Zhanzhan Shi appointed as the new Acting Chief Financial Officer and Jianshuang Wang as the Chairman of the Board of Directors and Co-Chief Executive Officer.
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